3 ms·

How do you think they make money with a no commission service? Order flow has value.

• rajacombinator 9y ago
  One of the above, hence the question. (I assume the latter and that they’re just a marketing organization.) The scummy part is that their customers don’t know this.
  • freeone3000 9y ago
    What makes you think their customers don't know this? It's in their brokerage disclosure statement, same as anybody else who does this. It just doesn't... matter. Zero-fee transaction trading from my phone outweighs this.
    • pishpash 9y ago
      It doesn't matter if money doesn't matter, yeah. Zero-fee transaction trading does not outweigh this, unless you have only peanuts to trade such that trading fees are more significant than spreads/execution.
      • freeone3000 9y ago
        avoid the spread by cross-checking and issuing a limit order. no fee on those, either.
    • rajacombinator 9y ago
      Almost zero customers at any brokerage are aware of this - how many do you think read the fine print? It’s an unethical industry. And zero fee trading is great, except it’s not zero fee. But “stupid people deserve to get fleeced” seems to be enough ethics for most people.